Which of the Following Is Not Correct

question 31

Multiple Choice

Which of the following is not correct?

• A) A more aggressive collection policy will reduce bad debt expenses, but may also decrease sales.
• B) Collection policy usually has little impact on sales since collecting past-due accounts occurs only after the customer has already purchased.
• C) Typically a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account.
• D) A lax collection policy will frequently lead to an increase in accounts receivable.
• E) Collection policy is how a firm goes about collecting past-due accounts.

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Definitions:

Anchored

Contextually tied or fixed to a particular point of reference or standard, often used in assessment, measurement, or in qualitative research to provide stability or calibration.

Halo Effect

Error that occurs when the overall impression of an individual clouds the rating of that person in one or more select areas.

Observational Methods

Research techniques that involve watching and recording behaviors or events as they occur without manipulating the situation.

Inaccurately

Incorrectly; without precision or truthfulness.